Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin25.6%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-45.6%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt-12.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$16.4B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$388M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Price-to-Book4.70x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$310M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings-$60M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Air Products and Chemicals, Inc
Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, metals, manufacturing, electronics, energy production, medical, food, chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. Air Products and Chemicals, Inc. was founded in 1940 and is headquartered in Allentown, Pennsylvania.
Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, metals, manufacturing, electronics, energy production, medical, food, chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. Air Products and Chemicals, Inc. was founded in 1940 and is headquartered in Allentown, Pennsylvania.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-1,440,800
678,200
Reconciled Depreciation
385,400
370,700
Reconciled Cost Of Revenue
2,125,000
2,107,500
EBITDA
-1,502,900
1,276,000
EBIT
-1,888,300
905,300
Net Interest Income
-49,400
-54,500
Interest Expense
49,400
54,500
Normalized Income
693,274
696,086
Net Income From Continuing And Discontinued Operation
-1,440,800
678,200
Total Expenses
2,350,700
2,346,000
Total Operating Income As Reported
-2,097,100
734,500
Diluted Average Shares
222,800
222,900
Basic Average Shares
222,800
222,800
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-1,440,800
678,200
Net Income Common Stockholders
-1,440,800
678,200
Net Income
-1,440,800
678,200
Minority Interests
-18,500
-13,200
Net Income Including Noncontrolling Interests
-1,422,300
691,400
Net Income Discontinuous Operations
0
Net Income Continuous Operations
-1,422,300
691,400
Tax Provision
-515,400
159,400
Pretax Income
-1,937,700
850,800
Other Income Expense
-2,698,600
148,800
Other Non Operating Income Expenses
3,600
-1,400
Special Income Charges
-2,907,400
-22,000
Gain On Sale Of Business
-2,907,400
-22,000
Other Special Charges
29,900
Earnings From Equity Interest
205,200
172,200
Net Non Operating Interest Income Expense
-49,400
-54,500
Interest Expense Non Operating
49,400
54,500
Operating Income
810,300
756,500
Operating Expense
225,700
238,500
Other Operating Expenses
-14,900
-10,600
Research And Development
21,500
20,400
Selling General And Administration
219,100
228,700
General And Administrative Expense
242,400
Other Gand A
242,400
Gross Profit
1,036,000
995,000
Cost Of Revenue
2,125,000
2,107,500
Total Revenue
3,161,000
3,102,500
Operating Revenue
3,161,000
3,102,500
Balance Sheet
2026
2025
2024
Treasury Shares Number
26,800
Ordinary Shares Number
222,686
222,656
Share Issued
222,686
249,456
Net Debt
16,687,000
16,505,400
Total Debt
18,157,300
18,138,800
Tangible Book Value
12,648,000
14,145,400
Invested Capital
31,551,300
32,943,100
Working Capital
388,200
1,605,300
Net Tangible Assets
12,648,000
14,145,400
Capital Lease Obligations
489,800
607,000
Common Stock Equity
13,883,800
15,411,300
Total Capitalization
30,655,100
32,706,600
Total Equity Gross Minority Interest
16,596,400
17,837,100
Minority Interest
2,712,600
2,425,800
Stockholders Equity
13,883,800
15,411,300
Gains Losses Not Affecting Retained Earnings
-1,990,100
-1,977,100
Other Equity Adjustments
-1,990,100
-1,977,100
Treasury Stock
2,003,300
2,004,600
Retained Earnings
16,299,500
17,838,000
Additional Paid In Capital
1,328,300
1,305,600
Capital Stock
249,400
249,400
Common Stock
249,400
249,400
Total Liabilities Net Minority Interest
23,849,200
23,403,600
Total Non Current Liabilities Net Minority Interest
19,273,900
19,905,700
Other Non Current Liabilities
1,374,400
1,341,500
Derivative Product Liabilities
Employee Benefits
Non Current Pension And Other Postretirement Benefit Plans
Non Current Deferred Liabilities
638,400
661,900
Non Current Deferred Revenue
Non Current Deferred Taxes Liabilities
638,400
661,900
Long Term Debt And Capital Lease Obligation
17,261,100
17,902,300
Long Term Capital Lease Obligation
489,800
607,000
Long Term Debt
16,771,300
17,295,300
Long Term Provisions
Current Liabilities
4,575,300
3,497,900
Other Current Liabilities
51,500
51,600
Current Deferred Liabilities
Current Deferred Revenue
Current Debt And Capital Lease Obligation
896,200
236,500
Current Capital Lease Obligation
Current Debt
896,200
236,500
Other Current Borrowings
Pensionand Other Post Retirement Benefit Plans Current
Payables And Accrued Expenses
3,627,600
3,209,800
Current Accrued Expenses
Interest Payable
Payables
3,627,600
3,209,800
Other Payable
Dividends Payable
Total Tax Payable
98,000
174,500
Income Tax Payable
98,000
174,500
Accounts Payable
3,529,600
3,035,300
Total Assets
40,445,600
41,240,700
Total Non Current Assets
35,482,100
36,137,500
Other Non Current Assets
1,653,800
1,100,000
Defined Pension Benefit
Non Current Prepaid Assets
Non Current Deferred Assets
Non Current Deferred Taxes Assets
Non Current Accounts Receivable
1,229,400
1,264,200
Financial Assets
Investments And Advances
5,577,400
5,440,100
Other Investments
Long Term Equity Investment
5,577,400
5,440,100
Goodwill And Other Intangible Assets
1,235,800
1,265,900
Other Intangible Assets
278,400
294,400
Goodwill
957,400
971,500
Net PPE
25,785,700
27,067,300
Accumulated Depreciation
-18,125,300
-17,643,100
Gross PPE
43,911,000
44,710,400
Construction In Progress
Other Properties
790,600
925,200
Machinery Furniture Equipment
43,120,400
43,785,200
Buildings And Improvements
Land And Improvements
Current Assets
4,963,500
5,103,200
Other Current Assets
Hedging Assets Current
Assets Held For Sale Current
475,500
472,600
Current Deferred Assets
Prepaid Assets
155,100
163,800
Inventory
751,600
788,100
Finished Goods
192,800
199,500
Work In Process
54,000
38,600
Raw Materials
504,800
550,000
Receivables
2,600,800
2,652,300
Other Receivables
719,300
757,400
Taxes Receivable
Accounts Receivable
1,881,500
1,894,900
Allowance For Doubtful Accounts Receivable
Gross Accounts Receivable
Cash Cash Equivalents And Short Term Investments
980,500
1,026,400
Other Short Term Investments
117,500
Cash And Cash Equivalents
980,500
1,026,400
Cash Flow
2026
2025
2024
Free Cash Flow
309,500
-350,500
Repayment Of Debt
-74,100
-569,600
Issuance Of Debt
204,800
382,500
Capital Expenditure
-995,700
-1,251,200
Income Tax Paid Supplemental Data
109,100
123,600
End Cash Position
980,500
1,026,400
Beginning Cash Position
951,000
1,856,000
Effect Of Exchange Rate Changes
2,300
2,700
Changes In Cash
27,200
-832,300
Financing Cash Flow
-285,300
-490,100
Cash Flow From Continuing Financing Activities
-285,300
-490,100
Net Other Financing Charges
179,700
28,100
Proceeds From Stock Option Exercised
1,100
Cash Dividends Paid
-403,000
-398,400
Common Stock Dividend Paid
-403,000
-398,400
Net Issuance Payments Of Debt
-62,000
-119,800
Net Short Term Debt Issuance
-192,700
67,300
Net Long Term Debt Issuance
130,700
-187,100
Long Term Debt Payments
-74,100
-569,600
Long Term Debt Issuance
204,800
382,500
Investing Cash Flow
-992,700
-1,242,900
Cash Flow From Continuing Investing Activities
-992,700
-1,242,900
Net Other Investing Changes
91,800
28,300
Net Investment Purchase And Sale
0
0
Sale Of Investment
0
0
Net Business Purchase And Sale
-88,800
-20,000
Purchase Of Business
-88,800
-20,000
Net PPE Purchase And Sale
-995,700
-1,251,200
Purchase Of PPE
-995,700
-1,251,200
Operating Cash Flow
1,305,200
900,700
Cash Flow From Continuing Operating Activities
1,305,200
900,700
Change In Working Capital
60,500
-215,100
Change In Other Working Capital
46,800
8,900
Change In Payables And Accrued Expense
43,800
-191,300
Change In Inventory
14,900
-11,000
Change In Receivables
-45,000
-21,700
Changes In Account Receivables
5,100
6,100
Other Non Cash Items
67,600
-13,200
Stock Based Compensation
12,200
10,600
Deferred Tax
-637,300
78,200
Deferred Income Tax
-637,300
78,200
Depreciation Amortization Depletion
385,400
370,700
Depreciation And Amortization
385,400
370,700
Operating Gains Losses
2,857,600
-8,700
Earnings Losses From Equity Investments
-49,100
-28,500
Gain Loss On Sale Of Business
2,907,400
22,000
Net Income From Continuing Operations
-1,440,800
678,200
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $3.0B▲ $3.2B+4.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 32.5%▲ 32.8%+0.3pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 26.8%▲ 25.6%-1.2pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 23.6%▼ -45.6%-69.2pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$3.2B/qtr (≈$12.6B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.08x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$310M
vs Positive
Operating Cash Flow
$1.3B
Latest quarter · Buffett's cash reality check
ROIC
1.8%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
3.9x
Net Assets: $16.6B
⚠️Net margin compressed 69.2pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
⚠️Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.
Peers & Industry
No auto-detected peers for Specialty Chemicals. You can manually compare APD against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
1.88%
Low — management has little skin in the game
Return on Equity (ROE)
-10.4%
Weak — poor returns on equity
Return on Assets (ROA)
-3.6%
Poor — assets are not generating adequate returns
Debt Trend YoY
-1.1% YoY
Debt is declining — management is deleveraging
Leadership Team
Eduardo Menezes
CEO & Director
Age 62
Pay: $1,296,209
Melissa Schaeffer
Executive VP & CFO
Age 44
Pay: $1,503,203
Francesco Maione
President of Americas, Helium & Rare Gases
Age 55
Pay: $2,334,098
Megan Britt
Vice President of Investor Relations
Ivo Bols
President of Europe & Africa
Age 64
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.11%
18,054,436
Vanguard Capital Management LLC
6.50%
14,467,316
State Farm Mutual Automobile Insurance Co
5.32%
11,840,799
Capital Research Global Investors
4.68%
10,410,510
State Street Corporation
4.54%
10,110,495
Capital International Investors
4.46%
9,935,678
Dodge & Cox Inc.
4.15%
9,231,575
JPMORGAN CHASE & CO
2.72%
6,049,260
Risk Analysis
Beta (Market Risk)
0.75
Low volatility — more stable than the market
Short Interest
1.9% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.10x
Moderate leverage
Current Ratio
1.08x
Adequate liquidity
52-Week Price Range
Low: $229.11Current: $292.96High: $314.87
Currently at 74% of 52-week range
Air Products and Chemicals, Inc (APD) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 32.8%. Operating margin: 25.6%. Net margin: -45.6%. Market cap: $65.2B. Sector: Basic Materials. Industry: Specialty Chemicals. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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